Reforming Illinois’ Tier 2 public pension benefits is great. But not by “spending” planned future savings. Published by Jane the Actuary View all posts by Jane the Actuary
6 thoughts on “Forbes post, “Counting Chickens Before They’re Hatched: Will Illinois Botch Pension Consolidation?””
This is strictly a money grab by the completely corrupt politicians of Illinois. The politicians have stolen money from the current state pension funds on several occasions, and they have failed for over 30 years to properly fund the plan, hence the problem we are in. Illinois politicians have the worst recorded in the country at managing a pension plan, yet now they will get their grubby paws on billions of dollars that they have no business taking. It is outright theft. I did not see any language in the Bill where it says that under no circumstances can the legislature take money from the fund to pay for things like roads, etc. If they are so serious, put language in the Bill that states the money can only be used for pensions and under no circumstances can it be used for anything else and no legislation can be created to divert the funds or its funding.
Other concerns include which of their corrupt investment buddies will be handling the money and who is really getting the money?
My departments fund is doing well and I always felt good about retiring. Now I am concerned that it will not be there for long and I cant even imagine how horribly the benefit applications will be managed.
I fear that a ‘self destruct’ button was pushed that will lead to inevitable bankruptcy. The IML is working on changing federal bankruptcy law to allow states like Illinois to implode ‘categorically’. This recent consolidation was a critical step towards pushing all public safety pension debt onto the State’s platter. Once the move to a true ‘state’ pension is complete and returns and savings don’t materialize (fear not, one bad recession and this plan will be in “jeopardy”) the state will tell everyone we have no choice but to file ‘conditional’ bankruptcy and reorganize our ‘public safety’ debts. Don’t believe me? Just google IML and bankruptcy laws. They are actively working on bypassing the States constitution. We willingly gave up the security of our diversity. Of the 649 pension plans, the vast majority of those municipalities would have never qualified for bankruptcy. Now they are one step closer to not worrying about it. Bad move.
Great article. Well reasoned and thought provoking–actually damned scary.
Climate change might well be real and if it is, will eventually lead to a cataclysmic event of unpredictable scale. However, given the past and up-to-date history of Illinois’ politician’s meddling, short-sightedness and general ineptitude regardless of party affiliation, compounded by taking care of their pals first at every turn (especially applicable to Chicago and Cook County), the Pension’s of every pensioner in the State can be predicted with almost certainty–a complete and total disaster of the first order.
Do today’s politicians care? Ask yourself, did those who preceded today’s group care, did they do anything to substantially correct the problem which has been known and discussed for at least 50 years. Hell no is the answer and I suspect years from now when the collapse comes, those sitting in Springfield at the time will do just exactly what their predecessors did–point their fingers backward and blame others, scapegoating. At this they are all experts.